MON DEC 01 2025-theGBJournal| The Centre for the Promotion of Private Enterprise (CPPE) and concerned stakeholders in the Nigerian manufacturing sector on Monday expressed deep concern over the recent proposal by the Senate Committee on Finance to amend the Customs and Excise Act for the purpose of increasing excise duty on non-alcoholic beverages.
The proposal, CPPE said, comes at a time when manufacturers, SMEs, distributors, and retailers across Nigeria are grappling with unprecedented macroeconomic pressures.
The manufacturing sector—one of Nigeria’s largest job creators—continues to operate under extremely difficult conditions arising from inflation, escalating input costs, high energy prices, FX volatility, and weakened consumer demand.
”Against this backdrop, the proposal to further increase excise duty on non-alcoholic beverages is economically disruptive, socially harmful, procedurally flawed, and inconsistent with Nigeria’s broader development and industrial policy objectives,” the CPPE said in a statement released by its Director General, Muda Yusuf.
The CPPE outlined its position more explicitly after what it says is a ”thorough review and consultation with industry stakeholders, economic experts, and public policy analysts.”
The CPPE noted that over the past three years, the non-alcoholic beverage industry has absorbed significant shocks, including multiple tax adjustments and a steep rise in operating costs. Prices of non-alcoholic beverages have already risen by 200–300%, driven by inflationary pressures and prior excise policy changes.
Many operators are struggling to stay afloat. SMEs—who form the backbone of the beverage value chain—face thinning margins, declining sales, and limited access to affordable financing.
”Introducing a new round of excise increases under these conditions will further weaken their operating capacity, reduce output, erode purchasing power and lead to avoidable job losses.”
The Nigerian economy, it said cannot afford another wave of factory closures or layoffs at this delicate moment of recovery.
The CPPE also noted that any additional tax on beverages will translate directly into higher retail prices, and a threat to jobs and livelihoods.
It called on the Government to discontinue proposed increase in excise duty on non-alcoholic beverages, saying that the current economic realities render the proposal counterproductive and potentially harmful to national economic recovery and the welfare of the people.
Among other position taken by the CPPE are;
-Excise policy rate-setting should remain an administrative function, not legislated into the Customs and Excise Act.
Fiscal tools must remain flexible and responsive to prevailing macroeconomic conditions.
-Government should prioritise broader public health strategies rather than using taxation as the primary tool.
Nutrition education and awareness campaigns are more effective and less socially disruptive.
-Stronger government–industry collaboration is essential.
Manufacturers are willing partners in promoting health-conscious consumer choices, including the production of low-sugar and zero-sugar variants.
It called on the Senate Committee to reconsider the proposal in light of its potential economic, social, and institutional consequences.
”In the interest of economic stability, job protection, and sound public health strategy, we strongly urge the withdrawal of the proposed amendment.
A collaborative, evidence-based, and economically sensitive approach remains the best path forward for both public health and Nigeria’s manufacturing competitiveness,” the CPPE said.
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